Substantial compliance under a cheque-payment notification extends to demand drafts and pay orders drawn from the society's bank account.

Benefit under Notification No. 26/94 could not be denied merely because yarn sale consideration was received through demand drafts or pay orders instead of cheques, where the instruments were issued from the registered co-operative society's bank account. Prior Tribunal rulings treated such receipt as substantial compliance with the notification's cheque-payment condition, and that settled view was followed here. The revenue objection therefore failed, and the appeal was rejected.

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Issues: Whether the benefit of Notification No. 26/94 dated 01.03.1994 could be denied merely because the consideration for the yarn was received through demand drafts instead of cheques drawn by the co-operative society or corporation on its own account.

Analysis: The only dispute was the mode of receipt of sale consideration under the notification. Earlier Tribunal decisions had already held that receipt through demand drafts or pay orders amounts to substantial compliance where the instruments were obtained by issue of cheque from the account of the registered co-operative society maintained in the bank. The same view had been consistently followed in subsequent decisions, and the Tribunal found no reason to depart from that settled position.

Conclusion: The notification condition was substantially complied with, and the revenue objection failed. The appeal was rejected.

Ratio Decidendi: A notification condition requiring payment by cheque is satisfied in substance when the amount is received through demand draft or pay order drawn from the co-operative society's bank account, amounting to substantial compliance.

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